More Obamacare Delays Loan Businesses a Reprieve
The Affordable Care Act, colloquially known as Obamacare, has received mixed reviews on the part of small business owners. For some, the new regulations on what kind of coverage must be provided to employees does not currently apply because they have a low enough head count. For others, they must work on complying with the regulations by a deadline that has been recently moved back a year to 2016. CNBC reported that there was also an announcement of looser requirements on the percentage of employees at firms. Instead of being required to offer coverage to 95% of their workforce by 2015, the quota was moved down to 70%.
The official word on the less severe changes required is that in order for Obamacare to begin to take effect in a constructive way that does not overly punish small business owners, it must be phased in gradually, hence the more lax deadlines in place. The administration also pointed out that the majority of businesses set to be subject to changing regulations already meet or exceed the standards being put into place. Either way, small business owners will now have some more time to plan their transition. If they neglect to comply, they could wind up being subject to heavy fines of up to $3K per uninsured worker, so the incentive to be compliant and meet deadlines is certainly there.
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